Interested to Buy Any Domain ? << Click Here >> for more details...
1. During the current period, ABC Ltd sold 60,000 units of
product at Rs. 30 per unit. At the
beginning for the period, there were 10,000 units in
inventory and ABC Ltd manufactured
50,000 units during the period. The manufacturing costs and
selling and administrative
expenses were as follows:
Total cost Number of units Unit cost
Rs. Rs.
Beginning inventory:
Direct materials 67,000 10,000 6.70
Direct labour 1,55,000 10,000 15.50
Variable factory overhead 18,000 10,000 1.80
Fixed factory overhead 20,000 10,000 2.00
Total 2,60,000 26.00
Current period costs:
Direct materials 3,50,000 50,000 7.00
Direct labour 8,10,000 50,000 16.20
Variable factory overhead 90,000 50,000 1.80
Fixed factory overhead 1,00,000 50,000 2.00
Total 13,50,000 27.00
Selling and administrative expenses:
Variable 65,000
Fixed 45,000
Total 1,10,000
Instructions:
1. Prepare an income statement based on the variable
costing concept.
2. Prepare an income statement based on the absorption
costing concept.
3. Give the reason for the difference in the amount of
income from operations in 1 and
2.
- 3 Answers
- 6417 Views
- I also Faced
- E-Mail Answers
Answer Posted / pushpa s
2. Statement of absorption costing concept:
Total Sales : 60000X30= 18,00,000
Total EXP : 2,60,000+13,50,000=16,10,000
Total Advt Exp : 65000+45000 = 1,10,000
=18,00,000-16,10,000-1,10,000
Total Income : 80,000
| Is This Answer Correct ? | 0 Yes | 0 No |
Post New Answer View All Answers
Debit Card Come Under Which group in Tally 9?
What is aggregate Liabilities ?
Who created snapit accounting?
HOW WE MADE ENTRY OF SURCHARGE ON VAT PURCHASE IN PUNJAB
Explain me your current/former role, your responsibilities, and how success is/was measured?
Under the accrual basis of accounting, when revenues are reported in the accounting period?
how to prepare brs statement for company in tally
Explain me is any difference between inactive and dormant accounts?
our cheque to Arshad Khan was dishonored?
SOLD GOODS WORTH 5000 TO AKBAR WHO PAID 3000 ON ACCOUNT
What is deferred account?
what are the limitations of accounting ratios?
what is the defination of mat n calculation of mat... with example this is applicable in company or firm, pl. discribe me.....thanx ashok
What is the definition of manual accounting?
What is the difference between consigner and consignee?
